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| Content Provider | ACM Digital Library |
|---|---|
| Author | Lee, Jonghyup Jung, Sunho Park, Jaehong |
| Abstract | This study examines the impact of the ratios of review text sentiments on product sales. The sentiments of online WOM are often mixed, since individuals usually have different preferences toward the same products. Past studies have focused on online WOM effects by measuring WOM's volume and valence. However, few studies have investigated how the ratios of relevant (positive or negative) and irrelevant review text influence product sales. Consumers often read review texts when they don't have enough information from WOM valence and volume. As WOM valence and volume are usually provided by an aggregation level, consumers often do not have enough information. Thus, reading the review texts has become an important process for consumers in making purchase decisions. However, when consumers encounter too many positive reviews, they may doubt the credibility of online WOM. Thus, this study analyzes the ratios of review text sentiments by conducting text mining techniques. We classify review texts into positive, negative, and leftover (or irrelevant) categories and create an Entropy variable to measure the ratios of review text sentiments. A high level of Entropy in review texts indicates that the sentiments of review texts are equally distributed, but not biased toward positive or negative sentiments. We estimate our research model with the Entropy variable in a panel dataset for 204 movies over a half-year period. The results suggest that Entropy level in review texts has a positive impact on movie box office sales when the Entropy is combined with WOM valence and volume. The findings imply that deleting negative reviews to enhance product sales may not help online retailers or related parties. |
| Starting Page | 1 |
| Ending Page | 11 |
| Page Count | 11 |
| File Format | |
| ISBN | 9781450334617 |
| DOI | 10.1145/2781562.2781583 |
| Language | English |
| Publisher | Association for Computing Machinery (ACM) |
| Publisher Date | 2015-08-03 |
| Publisher Place | New York |
| Access Restriction | Subscribed |
| Subject Keyword | Motion picture Entropy Consumer information search Electronic commerce Online user reviews Word-of-mouth |
| Content Type | Text |
| Resource Type | Article |
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